Bronco Drilling Company, Inc. - FORM 8-K - EX-99.1 - January 10, 2011

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Exhibit 99.1
Bronco Drilling Company, Inc. Announces Monthly Operating Results
OKLAHOMA CITY, January 10, 2011 (BUSINESS WIRE)—Bronco Drilling Company, Inc. (Nasdaq/GS:BRNC) announced today operational results for the month ended and as of December 31, 2010.
Utilization for the Company’s drilling fleet was 96% for the month of December compared to 97% for the month of November and 65% for the third quarter of 2010. The Company had an average of 24 marketed drilling rigs in December compared to 25 in November and 34 for the third quarter of 2010. The average dayrate on operating drilling rigs as of December 31, 2010 was $17,362 compared to $17,052 as of November 30, 2010 and $16,639 for the third quarter of 2010. The increase in average dayrate on operating drilling rigs is partially due to a wage increase initiated in October for Bronco field personnel that is contractually passed through to Bronco’s customers. The increase in average dayrate as a result of the wage increase was approximately $320 a day.
The Company cautions that several factors other than those discussed above may impact the Company’s operating results and that a particular trend regarding the factors above may or may not be indicative of the Company’s current or future financial performance.
About Bronco Drilling
Bronco Drilling Company, Inc. is a publicly held company headquartered in Edmond, Oklahoma, and is a provider of contract land drilling to oil and natural gas exploration and production companies. Bronco’s common stock is quoted on The NASDAQ Global Select Market under the symbol “BRNC”. For more information about Bronco Drilling Company, Inc., visit http://www.broncodrill.com.

 

 

Bronco Drilling Company, Inc.
Rig Status Report
as of December 31, 2010
                                                                 
                                                    Est. Duration (2)
    Rig No.   Horsepower   Rig Type   Basin   Status (1)   Contract   Days   Date
1
     6     650 hp     M     Anadarko     O     1 well                
2
     8     1000 hp     E     Bakken     O     Term     121       5/1/2011  
3
     10     1000 hp     E     Marcellus     O     Term     31       1/31/2011  
4
     11     1000 hp     E     Marcellus     O     Term     244       9/1/2011  
5
     12     1500 hp     E     Bakken     O     Term     152       6/1/2011  
6
     14     1200 hp     E     Anadarko     O     6 wells                
7
     15     1200 hp     E     Bakken     O     Term     397       2/1/2012  
8
     16     1400 hp     E     Bakken     O     Term     60       3/1/2011  
9
     17     1700 hp     E     Anadarko     O     4 wells                
10
     20     1400 hp     E     Bakken     O     Term     527       6/10/2012  
11
     21     2000 hp     E     Eagle Ford     O     Term     178       6/27/2011  
12
     22     1000 hp     E     Bakken     O     Term     207       7/26/2011  
13
     23     1000 hp     E     Bakken     O     Term     302       10/29/2011  
14
     25     1500 hp     E     Anadarko     O     Term     244       9/1/2011  
15
     26     1200 hp     E     Haynesville     O     Term     198       7/17/2011  
16
     27     1500 hp     E     Bakken     O     Term     640       10/1/2012  
17
     28     1200 hp     E     Bakken     O     Term     487       5/1/2012  
18
     29     1500 hp     E     Woodford     O     Term     32       2/1/2011  
19
     37     1000 hp     E     Marcellus     O     Term     182       7/1/2011  
20
     56     1100 hp     M     Anadarko     O     Term     51       2/20/2011  
21
     57     1100 hp     M     Woodford     O     2 wells                
22
     59     1000 hp     E     Bakken     O     Term     161       6/10/2011  
23
     62     1000 hp     M     Anadarko     O     well to well                
24
     77     1200 hp     M     Anadarko     O     Term     305       11/1/2011  
25
     97     850 hp     M     Anadarko     O     6 wells                
 
M — Mechanical
 
I — Idle 
 
E — Electric 
 
O — Operating 
 
1   Rigs classified as “operating” are under contract while rigs described as “idle” are not under contract but are being actively marketed and generally ready for service.
 
2   The estimated contract duration is derived from discussions with our customer regarding their current projection of the days remaining to complete the project.
 
    Changes from the prior month are highlighted.
 
*   Rig 15 is currently being winterized in Oklahoma City. It is scheduled to be delivered to North Dakota on or around 2/1/11.
Cautionary Note Regarding Forward-Looking Statements
The information in this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, comments pertaining to estimated contract duration. Such statements are subject to risks, uncertainties and assumptions, including, but not limited to, early termination by the customer pursuant to the contract or otherwise, cancellation or completion of certain contracts or projects earlier than expected, operating hazards and other factors described in Bronco Drilling Company, Inc’s. Annual Report on Form 10-K filed with the SEC on March 15, 2010 and other filings with the SEC, which are available free of charge on the SEC’s website at www.sec.gov. Bronco cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements.
Contact:   Bob Jarvis
Investor Relations
Bronco Drilling Company
(405) 242-4444 EXT: 102
bjarvis@broncodrill.com

 

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